Following Heritage Bank closure in June 2024, the NDIC has urged depositors to update their KYC details to expedite reimbursement, assuring them of efforts to resolve delays.

The closure of Heritage Bank in June 2024 prompted the Nigeria Deposit Insurance Corporation (NDIC) to act quickly, reimbursing insured deposits of up to ₦5 million per depositor.

However, some customers are still waiting to receive their funds due to delays in the reimbursement process.

At the 2024 NDIC Editors’ Forum in Lagos, NDIC Managing Director Bello Hassan, represented by Mustafa Ibrahim, explained the reasons behind these delays.

He pointed out that discrepancies in depositor records, missing Bank Verification Numbers (BVN), and account restrictions have prevented some customers from accessing their insured sums.

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Hassan urged depositors to comply with Know Your Customer (KYC) requirements, emphasising that doing so would resolve these issues and speed up the payments.

The NDIC has used BVN-linked accounts to streamline the reimbursement process, allowing most customers to receive their funds promptly without filling out forms or visiting offices.

Furthermore, Hassan noted that the recent increase in deposit insurance coverage from ₦500,000 to ₦5 million has significantly reduced the financial impact on many depositors.

For those with balances exceeding ₦5 million, the NDIC is recovering the bank’s assets and debts to pay the remaining amounts through liquidation dividends.

Hassan reassured the public that the NDIC is diligently working to resolve these challenges and urged depositors to ensure their KYC details are up to date to speed up the reimbursement process.